Tax Evasion Adds to Francis’ Legal Woes

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The founder of the risque “Girls Gone Wild” empire was indicted Wednesday on two counts of tax evasion by a federal grand jury, the latest in a series of legal woes for the Santa Monica entrepreneur, the Los Angeles Times reports.


The indictment in Reno of Joe Francis, 34, follows his arrest by federal marshals Tuesday on a contempt-of-court citation stemming from a civil case in Florida, where he is being held without bail.


Wednesday’s charges alleged that Francis deducted more than $20 million in false business expenses on corporate income tax returns filed in 2002 and 2003 by two of his companies, Mantra Films Inc. and Sands Media Inc.


Alleged improper deductions included $3.78 million that was counted as a business cost when it was actually spent to build a residence in Punta Mita, Mexico. In addition, $10.4 million in “false consulting services” was deducted, as was a $500,000 false insurance expense, according to the indictment.


The indictment also alleged that Francis used offshore bank accounts to conceal income earned in 2002 and 2003 through his companies. At the time, the indictment said, Francis was a legal resident of Incline Village, Nev.


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